Sony Pictures: Netflix issues 'not specific to Xbox'

by Ludwig Kietzmann { Nov 20th 2008 at 11:49AM }

That's right, Xbox 360 owners. Speaking to MTV Multiplayer, Sony Pictures has insisted that its collection of films hasn't been yanked from the Netflix streaming list just to spite you and your whirring, off-white system. "This issue is not specific to Xbox or any other individual platform," said a Sony Pictures spokesperson. As reflected in Netflix's comments on the sans-Sony situation, it's all just a matter of licensing. "Sony Pictures is currently in discussions with the relevant parties to resolve certain licensing matters related to the distribution of its motion pictures. Given the ongoing nature of these discussions, we don't think it is appropriate to comment further at this time."

Sorry, conspiracy theorists. It seems a big film company actually does want you to watch its wares, regardless of your platform of choice. Well, as long as it's not a telephone. Get real!

Tags: Columbia-Pictures, Movies, Netflix, NXE, Sony-Pictures, Streaming

Reader Comments (Page 1 of 2)

Jason @ Nov 20th 2008 11:53AM

Of course they want to license this for Xbox, it simply means more money in their pockets.

Latin Trident @ Nov 20th 2008 12:06PM

I think they will "discuss" and "license" the videos after this X-mas. Why would they want to make their films available on the 360 during X-mas to encourage consumers to buy 360 rather than their PS3? They want money in their pockets so they are planning to:
1) sell as many PS3s this Christmas and after the sales
2) put their movies on netflix.

Who knows, I might be wrong.

why not the LS2LS7? @ Nov 20th 2008 12:10PM

Yeah, don't take no crap from this talking head. Remember, it's all about you and what evil Sony wants to do to you and your ilk personally, regardless of what anyone else says (obviously, since they aren't you).

Xoviet chiK @ Nov 20th 2008 12:10PM

Well it's not like they are putting the latest and greatest films up on instant netflix. Surf's Up, Across the Universe, Superbad, and Resident Evil extinction are among the newest big name SPEI films on the service, I highly doubt they are their big holiday sellers this year.

xFenixKnightx @ Nov 20th 2008 11:55AM

HA! All that flaming the other day for nothing.

SoulBlade @ Nov 20th 2008 11:57AM

Flamers never need an excuse

xFenixKnightx @ Nov 20th 2008 12:09PM

True.

tlarkin79 @ Nov 20th 2008 12:11PM

You really believe that statement from Sony? This was all timed too perfectly with the launch of the xbox update for it not to be targeted.

Lone Starr @ Nov 20th 2008 12:14PM

^^
Maybe it's timed so "perfectly" because, gee, I don't know, they just rolled out the system? Sony would be stupid to play this game as they would lose money.

borland502 (SDF Macross) @ Nov 20th 2008 12:14PM

"This was all timed too perfectly with the launch of the xbox update for it not to be targeted."

Well, so we all thought. But correlation is not always causation. You should have enough movies to tide you over regardless. So chill, and laugh at how worked up everyone was.

Maverick Saturn @ Nov 20th 2008 12:54PM

Now everyone is going for the timing, lol, like as if Sony cares about whether it was the eve of NXE or not, they pulled the plug, fullstop, next objective is for Micro to get the license and bam, plug is back in the socket, no problem.

Monte @ Nov 20th 2008 2:28PM

For nothing? Netflix seems to have a different story, as they're specifically labeling movies as being unavailable on the XBOX 360. One of the two parties is full of it, and I'm inclined to believe it's Sony.

offday @ Nov 20th 2008 4:24PM

I'm not a fanboy, nor a "flamer", but you honestly believe that bs statement from Sony?

BananaBoat @ Nov 20th 2008 11:42PM

All that flaming yesterday was pretty entertaining. I don't think one statement from one executive is going to silence anyone though. As previously stated, the timing of the content pulling was just too close to the NXE launch to be coincidental.

No doubt that he's telling a partial truth though. I'm sure they do want to use the Xbox as leverage to get more money out of Netflix. They could have done so while the content was still up, so it doesn't absolve them of anything, but atleast they didn't lock themselves in a room and refuse comment in hopes that everyone would go away.

Tom90deg @ Nov 20th 2008 11:56AM

I don't know about anyone else, but here's what that statement says to me.

"We now realize that we can hold our movies hostage. You have to go through us, so we can charge pretty much whatever we want. Ain't monopolies grand?"

Of course, they could just be trying to iron out some fees what with the writer's strike, trying to figure out who gets paid what. That's a BORING story though.

KingOfGods @ Nov 20th 2008 11:56AM

I still think it has to do with the 360. Why wait until the eve of the NXE launch to yank them. I was in the pre-release of NXE and was able to watch Sony Pictures films without any problem.

They prob want more cash from Netflix and even MS to allow there movies on a competing box.

SoulBlade @ Nov 20th 2008 12:01PM

Yea because Sony has no desire to profit from the use of a competing product. That makes perfect sense. I mean, if I were a business, and I had a way to get money from people using my competitor's product, I'd be against it for sure.

SoulBlade @ Nov 20th 2008 12:03PM

To not be an ass (and apologies if it came off a bit too sarcastic) your last statement is correct, but I think it will apply to any other device that will want Netflix streaming.

Xoviet chiK @ Nov 20th 2008 12:05PM

It's not really a competing box though. Microsoft doesn't directly compete with Sony Pictures or even really Sony, they are competing with Sony Computer Entertainment. It's a plus to share the same parent company, PS3 has access to Sony films and Xbox 360 does not. But, Sony BMG has music on Xbox 360 and not on PS3, and before being absorbed into SCEI, Sony Online Entertainment had the right to develop for other platforms (e.g. The cancelled Star Wars Galaxies for Xbox PS2).

aaron @ Nov 20th 2008 12:50PM

also it ONLY affects the xbox.... nothing else. this is sony spin plain and simple.

maylon @ Nov 20th 2008 11:57AM

Sorry, but this is just a statement to cover their ass after the bad pr over this. No other streaming device has been affected by this other than the 360.

HazyCloud @ Nov 20th 2008 12:06PM

QFT. +1 for you.

SoulBlade @ Nov 20th 2008 12:07PM

Maybe because the contracts / agreements were signed and dotted already? Maybe the HD content has something to do with it. Sony's hurting for cash, so why wouldn't they want to take some from the 360 crowd? Their goal is to push Blu-ray w/ the PS3 - streaming content isn't really their style just yet.

Strike Man @ Nov 20th 2008 12:20PM

Correct, at least at this moment in time.

For the record, this is what is displayed for the affected titles by Netflix in your instant watching queue: "Not available on Xbox". ...which just sliiiiightly contradicts the "This issue is not specific to Xbox or any other individual platform" from the PR guy above. Even Winston Payne would've caught that one. :o

So either they are doing a bad job at spinning this story their way, or they have yet to tell _Netflix_ of this development.

Xoviet chiK @ Nov 20th 2008 11:57AM

That's good news, though without the option to test first, I ended up blindly purchasing Across the Universe... No regrets! These licensing issues made Sony Pictures Entertainment, Inc. a cool $25.95 + Tax!

Muu @ Nov 20th 2008 11:58AM

So, this means that instead of just the Xbox, an undisclosable number of set top boxes supporting streaming downloads from Netflix are being affected I suppose? I'm no expert with these kinds of features on devices, but it'd be interesting to see what you can and cannot watch on the various devices at the moment.

Dirty @ Nov 20th 2008 11:58AM

Now its an "issue", not them being complete "dicks" about it. Sony deserves the C-block of the year award.

HazyCloud @ Nov 20th 2008 2:05PM

Yesterday, I said the same thing myself. +1

Killjebus @ Nov 20th 2008 11:58AM

Why let those pesky facts get in the way of the new and improved bash Sony express?

I just heard that world leaders at the Economy Summit have officially said that is is Sony's fault that the World Economy is fucked.

There, I started a new one.

Ryan @ Nov 20th 2008 12:05PM

And now that Ive read about it on the internets, it MUST be true!! :O

j.howlett @ Nov 20th 2008 1:14PM

i thought it was bad on joystiq, i scrolled to the bottom of a story and saw the headlines for the other pages and x3f had a headline like sony blocks entire library. this was after an update saying it was just columbia pictures. those comments were a sight

Ayrkain @ Nov 20th 2008 12:02PM

Who'da thunk it?

SoulBlade @ Nov 20th 2008 12:03PM

Most people without an "I hate Sony" sticker on their shirt and who know a thing or two about the pain that is licensing...

philmcphail @ Nov 20th 2008 5:16PM

Yeah, I think the best course of action right now is for all of us to team up and beat the shit outta Sony. We'll tell 'em who's boss.

Mike @ Nov 20th 2008 12:07PM

... then why does it say "not available on Xbox" in my netflix queue? If this isn't an Xbox specific issue, then why is it that the only device effected is the Xbox 360?

Xoviet chiK @ Nov 20th 2008 12:12PM

It is a licensing issue, but it is an issue specifically involving the licensing of the streaming movies for play on Xbox 360.

why not the LS2LS7? @ Nov 20th 2008 12:14PM

Because that's what the programmer made it display.

Netflix clearly wanted to create an uproar and they did. It's common to do this in licensing negotiations. Look at what happens when Dish Network renegotiates licensing terms to carry various local TV stations. Suddenly the local station runs scrolls across the bottom "if you have Dish you may be about to lose this station, we recommend you get DirecTV or cable. Contact Dish Network at 1-800-EFF-YOU for more info".

The Xbox 360 is perhaps the only device not licensed right now. Maybe it's the only HD streamer (it is, so far). Maybe it's because it doesn't fall under the description of what's in the license (streaming to a dedicated device) or something. We don't have access to the contracts, so we don't know.

Mike @ Nov 20th 2008 12:16PM

Xoviet chiK,

from the article:

"This issue is not specific to Xbox or any other individual platform," said a Sony Pictures spokesperson.

Yea, I get that it's a licensing issue - but if this is not an issue that's specific to any one platform, then why is there only one platform effected?

Xoviet chiK @ Nov 20th 2008 12:21PM

Because for some reason they haven't specifically licensed them for play on Xbox 360 yet. You have to license for every device. It isn't directly related to Xbox 360, rather that license agreement between Netflix and SPEI didn't include Xbox 360 and it hasn't been updated yet. The issue only affects Xbox 360 right now, but it's an issue between Netflix and SPEI and not SPEI and Xbox 360/Microsoft.

Mike @ Nov 20th 2008 12:26PM

Xoviet Chik

You're absolutely right - it is between SPEI, and Netflix. And yes, it's a licensing issue - the 360 (for whatever reason) isn't covered by the current license - and it's the only device not covered, thus making it the only device effected.

Also, come on - you mean to tell me this just happened to come up the night before the NXE launched? The night before millions of 360 owners had access to streaming netflix through their console? Seriously? You think that was a coincidence? I could stream Sony movies Monday night, but not Wednesday? Just random happenstance? A little serendipity? No. Just no. Sony picked the right time (for them) to pop up w/ a complaint about their movies being streamed to a new device. Now, this probably would have happened if it were any wildly popular device, but it wasn't - it was the 360. Sony found a loophole somewhere in the contract, and now they're trying to squeeze all they can out of Netflix - it's just that simple.

Maverick Saturn @ Nov 20th 2008 12:48PM

It really doesn't matter when Sony decided to pull thier movies, it could be bloody Xmas day or New Years, heck it could be my birthday, what matters is that there was no license between netflix, Sony and Micro, if Microsoft wants it, they have to become part of that license agreement. If I'm selling a product, I can decide whenever the heck I want to pull it, it's mine, if you want it, you know what you have to do.

Mike @ Nov 20th 2008 1:00PM

Maverick Saturn,

You're a little off base here. First I'll address the date issue. The NXE has been capable of streaming movies for some time now. At least a month. Everyone in the preview program has been able to take advantage of this feature in that time. If Sony had an objection to the service working as it does, they COULD have chimed in any time and said so. They didn't. They waited 'til the day before the NXE launched to put netflix in a compromising position. With the NXE comes new netflix subscribers. If they want those subscribers to stick around, they have to put their best foot forward, meaning, they have to appease Sony as quickly as possible - this doesn't really leave time for negotiations with the goal of a fair compromise. Netflix will likely end up giving more than they wanted to in order to resolve the issue.

Next up, the licensing. Netflix has a contract w/ microsoft to deliver their service to the 360. Netflix also has licensing deals with the major studios to offer their films for rental, streaming, or both. MS, Netflix, and Sony don't all have to agree on anything. Netflix and MS have to agree on the terms of how Netflix is delivered to the 360, and Netflix and Sony have to agree on what Netflix can do w/ Sony movies based on the money Netflix has paid for the license.

Again I say Sony most likely found some contractual loop hole allowing them to push for a renegotiation of the license with regards to the 360 (possibly 'cause it streams HD). I may have been unclear about this in my other comments, but this probably would have all happened just the same as it is if it were, let's say, Tivo debuting the same type of service this week. Sony saw an opportunity to renegotiate for a more favorable licensing agreement and took it. Simple as that.

Noshino @ Nov 20th 2008 1:08PM

well Mike, it can also work the other way around, what if it was Netflix/Microsoft whom took long to get the licenses? And yah, I know you are going to say that the ones that tried NXE before official release were able to access, but that's the thing, it wasn't officially released, its just like how some of us made levels for LBP about Mario, Sonic, and other games with zero to no problems, but after the beta was gone, they were wiped...

Mike @ Nov 20th 2008 1:12PM

Noshino,

You could totally be correct on that. I lean the other way, not because of the date, but because the only studio complaining is Sony. That means Netflix settled the licensing issues w/ a wide variety of studios already - Sony's the only one with a problem, which implies (not proves, but implies) that Sony is being the "squeaky wheel" here. Like I said, it totally could be negligence on Netflix's part - my personal opinion, based on the facts, is that Sony's making a stink to get a more favorable license renegotiation.

Noshino @ Nov 20th 2008 1:26PM

Mike,

Well, true, but one of the most important facts you are forgetting is that Sony is also one of the biggest companies. You are combining Columbia Pictures films, Screen Gems films, Sony Pictures Classics films, and TriStar films...

Mike @ Nov 20th 2008 1:37PM

Noshino,

Right again - SPEI is huge - and as such they were likely one of the first (if not THE first) Netflix would have contacted if they had foreseen a problem with the licensing. So, either

1.Netflix felt their contract w/ sony wouldn't be effected by a new device being thrown into the mix, and as such didn't approach them - which resulted in Sony approaching Netflix with this shortly before the NXE lauhcn.

2. Netflix DID contact them, but SPEI drug their feet, and made unreasonable requests to prolong negotiations.

I highly doubt that Netflix just neglected to address SPEI, or that they put off addressing SPEI until the last possible minute - their goal is to get new subscribers with the NXE, and that wouldn't pan out if they were derelect in their efforts to make sure the licensing issues were squared away before launch.

why not the LS2LS7? @ Nov 20th 2008 4:14PM

So what if Sony pulled it on that day on purpose? They couldn't pull it if Netflix had a contract in place, so clearly Netflix didn't execute on their business very well.

As I said, this happens all the time.

Here's an example.

http://dbstalk.com/showthread.php?t=141001

In the end, it's Netflix. Columbia is under no obligation to offer their service if they don't have a contract with Netflix. Since Netflix' business seems to depend somewhat on having this contract (as evidenced by the bitching over it), it behooved them to settle up and get a contract in place.

For them to not do so makes it as much their fault as Sony's.

Mike @ Nov 20th 2008 4:22PM

why not the LS2LS7?,

I'm not saying it's never happened before, I'm just saying it's a dick move on Sony's part. Dick moves happen in the business world every day, and the entertainment industry is no exception. I suspect Sony is exploiting a contractual loop hole, and that's a dick move. I'm not saying it's not standard business practice - just a dick move.